The clarion. [volume] (Jackson, Miss.) 1883-1888, 1887-10-05

Is lflouted among the old counties of ~
state on March 2, 1888. (See H. G.p. ZIG
{. append, as Exhibit g.. a list of tba erg,r
s Ees holding stock through this fund II, ~
z Planters Bank, with the amount due eseb
ana also the amount Of the general fr,,,
ail-ia8 after the distribution was made !
aDoye, and which belongs 10 all the eo1n
- ~ she state 30 that it may be seen !
~ people Of the state are 10 be mad,
.i''oie' "ien per cent compound interest
Tor wat vas lost of the Seminar Funa p,
an investment in Planters Rant zt,cJs
tnat the liability ought also to extend :,
tAe repayment Of tine fund 20 solefnrl,
and sacredir devoted to the education 3
l"e poor. This with that mode Of comm
tation, would now amount to about S2.06Q.
w, ana on lt not one cent has been pai5
to this day.
fuFIHi-E c0T1l.sE8 OIL TINS IsvEsr.fgzr.
So you see the Legislature put NOT orl-
the peoples money collected for General
purposes but also the peoples money aris.
ing Ifom the trust funds, in this stock
Inc people-tbe proper and true owners ot
all OF them-fuily endorsed the investment
as safe and prudent. The best psople in
England and in the United States. and in
the State endorsed It (See Exhibit A.}
! IN addition 20 that the States everv-
| Where ia the Union deposited their money
| IN state Banks The United States did the
same, after the withdrawal by Gen. Jack
son OF the deposits from the United States
! hank and until the enactment Of the Sub
/ Treasury law. The United States DEPOSITED
their funds in this very Bank, and when the
| Bank failed il owed to the United States
! the sum of SZ9o,393 IS. q SUM larger than
| tue whole amount of the Seminary Fund
state banks mad about this time come 10
| the front as the only safe fiscal agencies of
TINS country. There were then no railroad
| stocks The de5t Of the United States was
| then either extiuguished or on the eve Of
final payment and Congress was devising
means of getting rid Of the surplus The
| Legislature of Mississippi, by the Consti-
| tuition of 1892, was prohibited from bor-
rowing the money; so there was nothing left
in which to invest the Seminary Fund ex-
cept bank stock. 1t has been urged ia the
University pamphlet, before referred to.
that the Planters Bank was new institu-
iion, and had not been tested and tried as
solvent, and Is failure might have been an
tlcipated. = ne answer is, that the Lezisla-
tGre had made the most wise aud cOnserva-
tive provisions to secure its solysucy and
Iu such cases new banks are trusted 20 the
same extent as Old ones, and that iu the
end the trust of the Legislature turned out
to be as wise and safe as II it had been
given toau older institution; for the Plant
er's Bank proved to be as solvent and safe
as amy In the State ID is shown by the
special message of Gov McNutt Of Feb
ruary, 1870 (see ii. j., p. 36I), that the Audi
ter Of Public Account sold AZ7 shares of
the stock Of the bank I'M which was invested
the three per cent fund. at premium of
- per cent The same terrible hnan-
cial crash which wrecked the Planters Bank
banlTupted, also, ali OF the banks IN the
State, as we'll as most of them ia the South
eru and Western States. Not only banks
were wrecked, but State Treasures were
hauirupted, and the most conservative and
strongest business houses in the Union,
and the people eH u,Csse. were plunged in a
common calamity of rIin and Insolvency.
In Mississippi, especially, the blow fell
with EXTREMIST severity. The courts were
flled with suits to collect dsflulted debts. |
More than half the property in the State |
PASSED under the sheria's hammer or was /
sold under mortgage or trust deeds. Lands /
and slaves, and finally cotton, fell TO the |
lowest price ever known before or since /
The blow was unexpected it was unfore I
seen by the Wiss5t huauciers. From 1886 /
to 1910 there was no money ia circulation |
IN Mississippi but bank paper. The taxes /
were cOlieete in bank paper, and all debts |
that were paid at alli were paid in this cur- |
rency. Gov Fucker IA his message of |
July 10, lSAS l5ee I'll. j. p. 26), shows that |
3O2,955,35l5 in bank paper. was in the |
Treasury, and was utterly worthless. SOFT
turns out, after all, that the course pursued |
by the Legislature i'm reference to the Sem
mary Fund, was as safe as any that lay |
open to It. If tho fund had been loan /
cd to private parties no foresight could /
have maae the debts more secure than the /
notes given for the purchase money, nor |
even as secure, since tine tide to the land !
sold remained in the Legislature till its |
price was paid in fun. If it had been so |
loaned nearly every dollar would have been |
lost. Ifthe money had been collected and de |
posted in the State Treasury for safe keep |
ing for it could not be borrowed by the
Statel, then, the whole amount of it would |
have been lost by the failure of the banks IN
whose notes alone collections could have
been made. If tbs lands had been retained
they would have produced little or no rev.
enue, as experience had shown. They would
have been subject to trespasses, and waste
and deterioration; and when the financial
storm was over would not have brought in
the market as much as has been realized
and paid into the State Treasury. The
Hon. Jacob Thompson, President of she
FuSLtGs UA ble Gn4AEtellNs y IN MS report 10
Gov. McRae ia 1906, hereinafter to be men
toned, though seeking to hold the State
liable for the whole amount of the sales, was
compelled to use this language &" The
transform ation' (the sale of the lands un-
der the act of 1889 was the voluntary act
of the Trustees" ti e., the Legislsture).
The policy Ghieh dictated Jt 1eas no doubt
lrise one =" The wisdom of the sale and in
vestment is thus conciusively established.
aud also admitted by Mr.. Thompson. 1t
seems the question of the non-liability of
the State on that account ought to be re-
/ garded as settled.
| To show how utterly unjust Is this at
/ tempt TO hold the State liable for the losses
| occasioned by the sale of the lands on credit
| though she has in fact paid in full, with
/ legal interest, the full amount thereby,
! l mean to submit some figures as to the real
value of these lands at cash sales.
The United States. IN November, 1888,
when these Seminary lands were sold, held,
/ in the State of Mississippi, 27,6t9,945 acres
of land for sale These lands were not
| then being sold on a credit, for such sales
| had ceased a year or more before. The
United States always frst offered all their
lands at auction to the highest bidder, and
those not bringing Sl.25 per acre were
then subject to private entry. At these
public sales, as all the lands were oHefed,
! Of course only the best lands were sold.
Now in the same month of November, 1888,
che United States offered large amount
of these lauds for sale at auction for
cash and at the Augusta land Office
out of I9,I7S acres soldl only forty
acres were sold as high as S2.53 per
acre At Chocchuma, out OF 90, los
acres sold, only 81 acres brought as high
as $40 per acre. At Columbus, out Of 9o,-
7s8 acres sold, only so brought Sl2.OO PEI
acre. At Mt Salus, out of s9,0f4 acres sold,
only 160 acres brought 1886 per acre. Inc
average price. received for all the lands solo
in that month as above, Is S1.52, and the
averaUe Of all the sales made during the
year 1888. Is $1.37 per acre. So 1t Is cleai
# these lands had been sold for caSh, they
would have been sold in competition witt
tha United States, and would not haV'
brought more than the average. but let u
mt II at double the average. Then thi
| Seminary lands (23,0f0 acres), would nay'
! brought S7O.0t1.6O, instead OF s2ff,55z o.
The State has accounted for ana paid 4
. the University, as will be seen hereafter
with six per cent. interest, more than fou
times the amount of possible cash sales, a
above shown.
The difference between the amount o
cash and credit sales of land IS so manifest
that all will perceive it. In fact, It ha
: been the law of Mississippi, during he
whole existence. not to allow trust lands sol
! for cash, except in very extraordinary clr
, cumstances-
l-N-.,